{"id":8700,"date":"2014-01-18T17:54:00","date_gmt":"2014-01-18T16:54:00","guid":{"rendered":"https:\/\/casmef.luiss.it\/publications\/the-economics-of-private-digital-currency\/"},"modified":"2026-07-30T17:54:39","modified_gmt":"2026-07-30T15:54:39","slug":"the-economics-of-private-digital-currency","status":"publish","type":"casmef_publication","link":"https:\/\/casmef.luiss.it\/en\/publications\/the-economics-of-private-digital-currency\/","title":{"rendered":"The Economics of Private Digital Currency"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Abstract: Recent innovations have made it feasible to transfer private digital currency without the intervention of an institution. A digital currency must prevent users from spending their balances more than once, which is easier said than done with purely digital currencies. Current digital currencies such as Bitcoin use peer\u2010to\u2010peer networks and open\u2010source software to stop double spending and create finality of transactions. This paper explains how the use of these technologies and limitation of the quantity produced can be equilibrium strategies in which a digital currency has a positive value. This paper also summarizes the rise of 24\/7 trading on a computerized market in Bitcoin, a remarkable innovation in financial markets. I conclude that exchanges of foreign currency may be the obvious way in which use of digital currencies can become widespread.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dwyer GP. CASMEF Working Paper Series. 2014;(2). <\/p>\n","protected":false},"template":"","publication_type":[559],"class_list":["post-8700","casmef_publication","type-casmef_publication","status-publish","hentry"],"acf":{"pub_unit":7855,"pub_file":8699},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Economics of Private Digital Currency - Casmef<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/casmef.luiss.it\/en\/publications\/the-economics-of-private-digital-currency\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Economics of Private Digital Currency - Casmef\" \/>\n<meta property=\"og:description\" content=\"Dwyer GP. 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